Here Are Bernanke's Three Bullets

Here’s precisely what Bernanke sees as his remaining bullets, courtesy of ForexLive:

“We have not fully done that review and we need to think about possibilities. But broadly speaking, there are a number of things we could consider and look at; one would be further changes or modifications of our language or our framework describing how we intend to change interest rates over time — giving more information about that, that’s certainly one approach. We could lower the interest rate we
pay on reserves, which is currently one-fourth of 1%. The third class of things has to do with changes in our balance sheet and that would involve either not letting securities run off — as they are currently
running off — or even making additional purchases.

So: Language change, rates paid on reserves, and assets purchases.

Suffice to say, it doesn’t look like he’s going to do anything too wild, just yet, like directly intervening in stocks or lending money directly to mum & pop small businesses.

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